Abstract:
Export development plays an important role in promoting economic
growth and development. Understanding of export competitiveness has
primarily been pursued in terms of economic variables and market
conditions. The thesis involved an investigation into the determinants of
export competitiveness of tea industry in Sri Lanka. The main purpose of
this study is to identify the factors which affecting to the competitiveness
of tea industry in Sri Lanka and to develop a framework that helps to
enhance the competitiveness of tea industry. This study integrated
perspectives from export competitiveness, the resource based view of the
firm, local and foreign demand conditions of the firm, association with
related and supporting industries, government sources and brand loyalty.
Quantitative research approach was used and Porter’s diamond model with
some adaptations was taken as proposed model of this study. E-mail
survey compromised with the structured questionnaire was used to collect
primary data from the sample. Key managers of tea exporting firms were
considered as the respondents. Partial least squares structural equation
model (PLS-SEM) was utilized to analyze the contribution of each factor
on tea export competitiveness. The data obtained from the firm level
survey were analyzed using Smart PLS version 2.0 and SPSS (version 16)
statistical packages. Supported by the empirical evidences this study found
out that factor conditions have the most significant influence of export
competitiveness of tea industry and the second important is government
support. Followed by government support, demand condition and brand
loyalty have also made positive impact on export competitiveness of tea
industry in Sri Lanka. Then the results suggested that factor conditions,
demand conditions, government support, brand loyalty and related and supporting industries can help Sri Lankan tea industry to sustain its
competitive advantage. While identifying important elements, results
indicated that raw material, technology, physical infrastructure,
information infrastructure, related industries, and firm characteristics have
significant impact. Giving priority to those elements strategies should be
developed to enhance competitiveness of Sri Lankan tea export. By
creating favourable conditions, Sri Lanka can remain competitive position
in the global tea industry for many years to come. Further study will focus
to conduct a comparative analysis of determinants of export
competitiveness and to assess the interaction among the factors affecting to
export competitiveness.